Zee dismisses reports that Sony called off merger

PTI

New Delhi, January 9

Zee Entertainment on Tuesday said it is “committed” to the merger with Sony Pictures Networks India and is working towards a “successful closure” of the transaction that will create the country’s largest media house worth $10 billion.

Shares plunge 8%

• Shares of Zee tanked nearly 8% on Tuesday amid uncertainty over the fate of the merger between the company and Culver Max Entertainment, formerly Sony Pictures Networks India
• The stock tumbled 12.66% to Rs 242.30 during the day on the BSE. It ended at Rs 256.25 apiece, lower by 7.64%
• On the NSE, the stock plunged 13.60% to Rs 240.30 during the day. Shares of the company ended at Rs 255.95 each, down 7.98%

The deadline of completion of the merger with Sony Pictures, now known as Culver Max Entertainment Private Ltd (CMEPL), has been extended for a month till January 21 after Zee Entertainment Enterprises Ltd (ZEEL) sought an extension under the Merger Cooperation Agreement signed between them two years ago.

“We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger,” ZEEL said in a filing to the stock exchanges.

The filing was submitted in response to a clarification sought by the bourses on reports that Sony might call off the deal. The Merger Cooperation Agreement between the two parties was signed on December 22, 2021.

On December 17, 2023, the Subhash Chandra family-promoted ZEEL sought an extension in deadline for completion of the merger from Sony Group Corporation (SGC) firm CMEL and Bangla Entertainment Pvt Ltd (BEPL) under the agreement. Subsequently, the deadline, which was to end on December 21, 2023, was extended by a month.

According to industry sources, the fate of the $10 billion-merger is hanging by a thread, with the two parties yet are unable to finalise an agreement as the end of the one-month grace period looms.

The parties are yet to come to an agreement over MD and CEO Punit Goenka leading the merged entity.

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